Track 1 Session 7

1:00 to 2:00 p.m. Thursday April 8, 2010

Reliability Services Within EPC Contracts: Added Cost or Added Value? It is Your Decision

When considering reliability services within large engineering, procurement and construction (EPC) contracts, there is an increasing propensity by the contractor towards a "tick box" mindset that merely ensures that each contractual requirement is completed. As a result, the intended benefits associated with these activities are not realised and optimal performance is unlikely to be achieved. This presentation shows the limitations of this approach and explores the integration of different reliability studies with the design and development using the techniques of RAM, FMECA and life cycle costing to optimise the design to the benefit of both the EPC contractor and the client. The presentation illustrates examples where value has been added through adopting an integrated approach. In contrast, the presentation also provides examples where unnecessary cost has been added, either because reliability studies were carried out too late in the design process or essentially disregarded by those tasked with the design, and illustrates the impact of this shortsighted approach. To conclude the presentation, decision-making techniques will be discussed that can be used to assist in future design decisions utilising the outputs of the reliability studies in an auditable way.

Key Words: EPC, Reliability Studies, Decision Making, Design Optimisation, Communication

David Capeling

ATKINS Ltd. (Energy)

UK